China’s central bank has continued its gold purchases for 15 months in January, highlighting steady official demand as the bullion’s record-breaking surge was interrupted by a steep market sell-off late last month.

The yellow metal held by the People’s Bank of China (PBOC) surged 40,000 troy ounces last month, Bloomberg reported, citing official data released on Saturday. The central bank began its latest round of buying the precious metal in November 2024.

In January, speculative interest drove gold and silver to successive highs, culminating in a historic decline later that month. Since then, prices have partially recovered, but markets stay volatile as investors reevaluate their positions following the sell-off.

Global central bank gold purchases, a crucial market pillar, increased in the last quarter of 2025, pushing annual totals past 860 tons, the report said, citing the World Gold Council. Although this is below the over 1,000 tons bought each year in the previous three years, demand is expected to stay strong, supporting gold’s position in official reserves, according to the Council.

PBOC cuts interest rates

Last month, China’s central bank announced cuts to specific sector interest rates to stimulate the economy early. It also indicated that this year there is a possibility for further reductions in banks’ cash reserve requirements and for more extensive rate cuts.

The PBOC announced it would reduce interest rates on its structural monetary policy tools by 25 basis points on 19 January, a move that generally has a limited effect on growth compared with reductions to benchmark policy rates, Reuters reported.

“The move is aimed at boosting support to major strategic areas and weak links in the economy,” the news portal quoted the central bank. China’s economic growth is projected to slow down in 2026 compared to 2025 and remain steady in 2027, according to a Reuters poll. The forecast highlights the pressure on policymakers to address structural vulnerabilities and implement additional measures to sustain long-term growth.